Sales-target incentives treated as trade discounts and not taxable as Business Auxiliary Service.

Monetary incentives granted by a supplier for achieving predetermined sales targets are treated as trade discounts, not consideration for providing Business Auxiliary Service. On that reasoning, such receipts are not liable to service tax under that category, and the demand cannot be sustained.

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Issues: Whether incentives received for achieving sales targets are taxable as commission under the category of Business Auxiliary Service.

Analysis: The Tribunal followed its earlier view that monetary incentives granted by the supplier for achieving predetermined sales targets are in the nature of trade discounts. Such receipts do not constitute consideration for providing Business Auxiliary Service and are not liable to service tax under that category.

Conclusion: The incentive received by the assessee for achieving sales targets was held not taxable as Business Auxiliary Service, and the demand could not be sustained.

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